Europe Open: 1.30 and 1.60 Still Holding For Fiber and Cable Despite Early Selling.

EUR/USD H1

Market started selling EUR/USD at the start of today, giving up most of yesterday's gain. We have broken through L3 of 1.304 which is also acting as a support for yesterday. Prices appear to be heading towards Yesterday's Low and a break may push price further down back to 1.30 round number. Before that, bears will need to test L4 which is also a strong support as seen yesterday by the “Hammer” candlestick that was formed just at the level .

GBP/USD H1

Looking similar to EUR/USD just that most of the selling actually occurred during Europe session yesterday and not today's Asian session. L3 acting as support for today, though support could be seen from current levels extending to Yesterday's low. Break below 1.60 may spur selling pressure as bears may take this as a continuation of downtrend from 1.6175 high.

DAX Futures M30

Early selling pressure as price head lower, breaking L3/L4 support and Yesterday's low along the way. Support seen around L5/7,250 and we could see some reprieve for the bulls from here on. Failure to rally back up to 7,300 round number (also round L4 support turned resistance) will be treated as weakness in bulls for continued selling pressure.

FTSE 100 Futures M30

Bears started strongly today. Although hindsight is 20/20, some traders could have seen it coming with late rally previous day unable to push beyond 5,890, which was the support for consolidation range between 18th – 19th Oct. Bears appear to be even more aggressive compared to DAX, but taking correlation into consideration, it is unlikely FTSE 100 may drop much further without DAX breaking its L5 today.

Brent Crude Oil H1

Brent fall from $115 per barrel was quick and swift. Price has consolidated a fair bit yesterday but we have broken below Yesterday's Support around $110.0 and is currently entering into L3/L4 support zone should Yesterday's low of 109.85 fail to uphold prices. After taking out 50.0% retracement last week, and 23.6% this week, the next significant Fib would be the 0.0 line at 107.5 (not shown on chart).

Bottomline:

Early pressures appear to be subsiding with EUR/USD and GBP/USD finding support, with equities indices doing the same. Oil remains heavily offered, but that should come as no surprise considering that Oil wasn't performing well when Equities and Currencies were rallying recently.

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